Month: January 2018

There are so many types of policies available nowadays that will indemnify for different kinds of losses. However, it is essential that you know the differences between at least the main types so that you will be choosing the correct coverage without wasting your money on something that is not essential.

The main purpose of this article is to analyse two main types of covers so that you know which one will suit your requirements when you meet the agent to get the policy.

Life assurance

As the name itself suggests, this type of policies are concerned with the life. You can decide the value of the cover depending on the premium that you can afford to pay or that you are willing to pay. On the occurrence of your death, the person you named in the policy document as the beneficiary will get the insured amount and, if you survived the policy time period, you will receive the total amount at the maturity of the cover.

As you can see, the insurable interest should, in a life assurance cover, be present only at the time of entering in to the agreement. However, in contrast, in a cover such as cargo insurance Hong Kongthe interest should be present at the time of entering in to the agreement and also at the time of loss.

Since you get the money at the end of the period if you are still alive by then, a life assurance cover can be considered to be a form of investment. Even in the event of your death, it can be considered to be an investment as it will give sufficient funds to the beneficiary to carry on his or her life after you have passed away.

Property covers

This type covers personal or real property owned by a person. These have different levels of protection and depending on the level, the premium you have to pay will be increased. For example, you can decide whether you are going for a policy that covers damages to property by fire and natural disasters only or you can opt for a cover with expanded protection even for the damages caused by riots, terrorist activities and the like.

As was said earlier, these are a type of indemnity covers. You are protected only for the actual loss. For example, in best freight forwarder liability insurance, if a thief stole half the cargo that was insured, you will only get indemnified for that half. You will not receive the total value of the goods.

These are short term contracts as opposed to the life assurance policies and, therefore, the policy value is generally lower.

Do not forget to consult your agent for more details before invest your money in a policy as there are so many other varieties of covers that were not covered here.